Gov. Deval Patrick has signed a $33 billion state budget for fiscal 2014, but used his veto power to slash hundreds of millions from the spending plan lawmakers sent him.

Among the items vetoed are $240 million in transportation funding, $177 million in unrestricted local aid and $18 million for programs he deemed unnecessary.

The governor has been embroiled with a budget dispute with the state legislature. Earlier this month, Patrick said the an $800 million transportation financing bill, which legislators say will provide money for the budget, is an unreliable source of revenue. The House and Senate plan raises gas, business and cigarette taxes by $500 million. But the governor rejected it, saying it relies on $135 million from Massachusetts Turnpike tolls set to expire in 2017.

Patrick sent the bill back to the legislature with an amendment calling for an additional gas tax hike to offset the expiring toll revenues in 2017, a measure legislative leaders have said they will reject.

Two slots applicants move to next step

The State Gaming Commission on Thursday reviewed the background investigations into PPE Resorts and Mass Gaming and Entertainment and deemed them suitable to move to the next phase in the licensure process.

The 2011 expanded gambling law allows for one slots parlor statewide. Four applicants are seeking the single slots license. The other two, Raynham Park and Plainridge Racecourse, will be discussed in public hearings later this month.

PPE, affiliated with the Baltimore-based Cordish Cos.,is focusing on a potential site in Leominster after failing to reach agreements with town leaders in both Salisbury and Boxborough.

Mass Gaming and Entertainment, a subsidiary of Chicago-based Rush Street Gaming, had hoped to build in Worcester, but is now turning its attention to Millbury after getting shot down.

The gambling law also allows for up to one commercial resort casino in each of the state’s three regions. Suitability hearings for the applicants seeking a casino license will likely begin in late August or early September.